Solon proposes P370-B stimulus package to address economic fallout of COVID-19

MANILA, Philippines — A lawmaker is proposing a P370-billion stimulus package to address the economic impacts of the coronavirus disease (COVID-19) on the country.

During the virtual meeting of the House’s Defeat COVID-19 Committee (DCC), Marikina City 2nd District Rep. Stella Quimbo presented her proposed bill titled the “Economy Moving Forward As One Act.”

The P370 billion-worth of funds shall be appropriated as a stimulus package for those affected by the COVID-19 outbreak through labor retention via business continuity.

The package shall be distributed as follows:

-Wage subsidies under the Department of Labor and Employment: P110 billion
-Interest-free loans under the Land Bank of the Philippines (Landbank), Development Bank of the Philippines (DBP), Small Business Corporation (SBC), and the Agricultural Credit Policy Council (ACPC): P130 billion
-Loan guarantees: P10 billion
-Grants to support activities to improve business resilience under the Department of Trade and Industry (DTI), Department of Tourism (DOT): P119 billion
-Compensation for paid sick leaves of COVID patients under the Social Security System (SSS) and the Government Service Insurance System (GSIS): P1 billion

Quimbo cited four principles in aiding businesses—continuity, compensatory, capacity-building, and proportionality.

Under continuity, the lawmaker said that firms shall receive assistance “for purposes of avoiding business closure, restoring business confidence, and ensuring that firms can proceed business-as-usual” after the COVID-19 crisis.

Likewise, Quimbo said that companies shall also be reasonably compensated for damages that firms have incurred during the outbreak, which the government would have shouldered.

Under capacity-building, Quimbo said that firms shall also receive assistance “for purposes of building their capacity to respond to new business arrangements after the COVID-19 outbreak and become more resilient to future economic shocks.”

Meanwhile, Quimbo said that the government can potentially lose P1.08 trillion due to COVID-19 if based on the decline of the gross domestic product from a 6 percent growth to a close to zero growth.

As of April 14, the number of COVID-19 cases in the country has soared to 5,223, with the death toll reaching 335.